City hall wants some strings attached to the cash it hands out to business groups.

The London Small Business Centre and TechAlliance would have to report back to city politicians on how they’re using money they get from taxpayers, if politicians approve recommendations in a staff report going Monday to a city committee.

“It astounds me in the 21st century we did not do this, we did not have contracts. There was no incentive for a partner to meet guidelines and budgets,” Coun. Maureen Cassidy said of the report going to the strategic priorities and policy committee.

“We should look at these things very closely.”

The report to politicians recommends the city “formalize” its agreements with the two groups, and demand reporting of their performances. It also wants funding it gives the groups to rise annually based on the inflation rate.

The proposed agreements that would run until 2023 mean the agencies would have to:

Report annually to council or a committee.

Provide council with highlights, initiatives and performance metrics showing how they’re developing the city’s workforce, attracting new jobs and investment, and supporting entrepreneurs, businesses and talent.

Provide an overview of how the funding is being used.

Meet quarterly with city staff and other city-funded business groups.

“Accountability is important, it is something I have always pushed for,” Cassidy said. “We have to report back in a formal way, we should have been doing this all along.”

Steve Pellarin, director of the business centre, welcomes the report, saying he has been asking for this kind of scrutiny from the city.

“There has always been a level of accountability, but this is very reasonable,” he said.

“We have been going to city council and making annual presentations. This is not new but it formalizes it.”

The centre has not had a funding increase in 10 years, Pellarin said. As for the annual cost of living raise, “that is a win for us. It ties us into the city budget process,” he said.

“We have wanted this for years. We want recognition as a key economic development partner.”

The small business centre will offer programs this spring and summer related to the food sector and construction as well as Summer Company that supports 14 high school or university students with a $3,000 grant to start a business.

The report comes at a time the city’s support for business groups has come under fire. The city paid the London Medical Network $10 million in 2014 and has been criticized for not attaching criteria to measure the effectiveness of that support.

Western University recently withdrew from the network that has underperformed in areas of economic investment and job creation, critics say.

Cassidy has argued the city should be paid back the more than $7 million of its money remaining in the network and city staff is expected to report back on the issue.

TechAlliance was embroiled in that dispute because it received more than $900,000 from the city-funded medical network to support small business job creation, but some of that spending went to businesses and groups outside the city, and not involved in medical research and innovation.

We have to report back in a formal way, we should have been doing this all along.

Coun. Maureen Cassidy

“The small business centre reporting has been good. I have raised concerns about TechAlliance. Its reporting has not been robust. It did not tell us anything,” Cassidy said.

TechAlliance director Marilyn Sinclair has resigned.

London Small Business Centre

Established in 1986

Partnered with the city and Ontario Economic Development Ministry in 2002.

Offers entrepreneurship programs and services, including consultation with business advisers, business plan preparation, market research, seminars, workshops and networking events.

Receives nearly $178,000 from the city that would increase annually based on the inflation rate.

Supported 314 businesses in 2018 and helped create 288 jobs.

Presented entrepreneurship programs at 19 schools and community groups last year.

TechAlliance

Established in 2002.

Became one of the 14 Regional Innovation Centres (RIC) in Ontario in 2011.

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